Dow’s Q2 Losses Soar to $801 Million Sales Drop 7% as Global Chemical Slump Deepens

Dow Inc. reported a sharp escalation in second-quarter losses, with net sales falling to $10.1 billion, down 7% year-on-year across all divisions. The company’s net loss widened to $801 million for Q2, compared to a $290 million loss in Q1, bringing first-half losses to a staggering $1.091 billion (approx. 7.8 billion RMB). Despite some sales growth in North America, declines in EMEA and Asia offset any gains.

Key pain points include a 7% annual and 3% sequential decline in prices, and a 1% drop in overall sales volumes. Operating EBIT plunged to a $21 million loss, a drop of $840 million versus last year, mainly due to lower prices and reduced equity earnings—even as cost-cutting and favorable FX offered some relief.

The cash flow from operations turned negative at -$470 million, a $1.3 billion drop from last year, mainly due to squeezed margins. Dow’s packaging and specialty plastics segment, the largest revenue generator, posted a 9% sales decline to $5 billion, with EBIT collapsing by 89%. The industrial intermediates and infrastructure segment saw sales down 6% and swung to a $185 million loss, while performance materials and coatings fell 5% to $2.1 billion, though EBIT improved sequentially.

Bright spot: Dow won a lawsuit against NOVA Chemicals and will receive C$1.62 billion (approx. 8.5 billion RMB) in compensation by year-end, expected to significantly bolster its annual results.

In response to mounting pressure, Dow is accelerating asset optimization—recently shuttering three major European production assets and selling its stake in DowAksa. These moves are part of over 20 “asset actions” since 2023, including plant closures in Argentina and Taiwan, and divesting non-core businesses.

Looking forward, Dow expects upcoming growth projects and strategic investments to position it for higher-value applications and more attractive end markets, while ongoing cost and asset restructuring aim to sharpen its competitive edge.